South Korean Altcoin Execs Released on Bail

Legal South Korea
Last updated:
Author
Tim Alper
Author Categories
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Two South Korean altcoin executives were freed on bail on February 7 pending a fraud trial. Prosecutors think the executives manipulated token prices to defraud investors.

Per Newsis, the Seoul Southern District Court released Pica Project/Pica Coin co-chairs Song (aged 24) and Seong (aged 45). The duo’s given names were withheld for legal reasons.

Altcoin Execs ‘Pose Flight Risk,’ Prosecutors Claim

Song and Seong were denied bail after their arrests on July 21, and have spent the past six months in pre-trial detention centers.

The prosecution told the court that the case was serious, “so there is a risk of flight.” They also told the court:

“Employees of the company run by the defendants and their acquaintances are scheduled to appear in court as witnesses.”

Prosecutors said that Song and Seong could potentially seek to contact these witnesses before the trial and convince them to testify in their defense.

However, the court rejected these appeals in favor of the defense lawyers’ assertion that refusing to grant bail could harm the defendants’ efforts to prepare for the trial.

Upbit, the nation’s biggest crypto exchange by trading volume, delisted the coin in 2021. The firm behind the coin appealed the decision.

The Seoul Southern District Court.
The Seoul Southern District Court. (Source: KBS Docu/YouTube)

South Korean Crypto Crime on the Rise?

The prosecution thinks the duo operated a scheme with a pair of famous stock traders.

Between them, prosecutors believe, the group raised around $25.5 million from investors by “falsely promoting the performance” of the altcoin.

This artificially “raised the price of the cryptoasset,” prosecution officials said. And when the price climbed high enough, prosecutors said, the quartet “sold their coins.”

The Pica Coin project is based – its masterminds claim – on the concept of “jointly owning expensive and famous works of art.” Prosecutors doubt the veracity of these claims.

South Korean courts are becoming increasingly busy with crypto-related cases. Many of these pertain to little-known altcoins and bogus exchanges.

Earlier this month, two crypto exchange executives were jailed on altcoin price manipulation charges.

And a report claimed that South Korean public spaces are now “polluted” with crypto-powered drugs left by narcotics dealers.

Police say that buyers pay dealers in crypto. The latter then leave bags of drugs hidden in water meters, elementary school playgrounds, apartment mailboxes, and drainpipes.

More Articles

Opinions
From Cypherpunks to Network States: How Web 3 Culture is Reshaping Digital Value
Roger M. Benites
Roger M. Benites
2025-02-12 16:32:16
Blockchain News
Crypto Exchanges Recorded $19 Trillion in Trading Volume in 2024: Report
Jimmy Aki
Jimmy Aki
2025-02-12 16:27:41
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors